Thallion Initiates Strategic Review Process

Montréal, February 20, 2013 - Thallion Pharmaceuticals
Inc. (TSX-V: TLN) ("Thallion" or "Company") today announced that a
Special Committee comprised of independent directors of its Board
of Directors (the "Board") has engaged a leading
healthcare-specialized investment banking group to conduct both a
strategic review of the Company and to assist the Board in
identifying and evaluating potential corporate opportunities, all
with a view to maximizing the full value of the Company's assets
and shareholder value.

Although the outcome of this review is uncertain, the
possibilities include, but are not limited to, the continued
development of Shigamabs®, in-licensing of additional clinical
assets, merger, acquisition or sale transaction. Thallion has not
established a definitive timeline to complete its review and will
be assessing all available alternatives within the next few months.
It is Thallion's current intention not to disclose developments
with respect to the process, unless and until the Board has
approved a specific transaction, if any, reached a conclusion with
respect to available alternatives, or otherwise determines that
disclosure is necessary or appropriate. The Company cautions that
there are no assurances or guarantees that the process will result
in a transaction or, if a transaction is undertaken, the terms or
timing of such a transaction. In the meantime, Thallion will
complete the one year patient follow-up safety assessment and close
out the SHIGATEC trial as per protocol over the next three months.
All other material spending on the Shigamabs® program will be
temporarily suspended.

"With more than $10 million in capital, limited liabilities and
a clean balance sheet, we believe Thallion's intrinsic value
continues to far exceed its current market capitalization," said
Dr. Allan Mandelzys, CEO of Thallion. "With the help of our
advisors and the support of our Board, we are hopeful in leveraging
our cash, management team and clinical development expertise to
generate the best value creating opportunities available for the
benefit of all our shareholders."

About Thallion Pharmaceuticals Inc.
Thallion Pharmaceuticals Inc. (TSX-V: TLN) is a biotechnology
company developing pharmaceutical products in the areas of
infectious disease and oncology. The Company's clinical programs
include Shigamabs® and TLN-4601, a novel anti-cancer therapy.
Shigamabs® is a dual antibody product being evaluated in a
Phase II clinical trial for the treatment of Shiga toxin-producing
E. coli bacterial infections. Additional information about Thallion
can be obtained at www.thallion.com.

Forward-Looking Statements
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words
"believe", "may", "plan", "will", "estimate", "continue",
"anticipate", "intend", "expect" and other similar expressions
which constitute "forward-looking information" within the meaning
of applicable Canadian securities laws. Forward-looking statements
reflect Thallion's current expectation and assumptions, and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those anticipated. These
forward-looking statements involve risks and uncertainties
including, but not limited to, risks relating to the outcome of the
strategic review process. Given these risks and uncertainties,
readers are cautioned not to place undue reliance on such
forward-looking statements. Thallion undertakes no obligation to
publicly update or revise any forward-looking statements either as
a result of new information, future events or otherwise, except as
required by applicable Canadian securities laws.

Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.